HELP!! Can someone please v simply explain exchange rates?

wordsfan

Hi all,

I really don't have the first clue, haven't travelled abroad for years. If a place says eg Euros We buy at 1.251 we Sell at 1.1050

What does that mean??

Is that 1.251 Euros per £1 I spend? or 1.1050 Euros per pound I spend or what?

PLEASE HELP!

Thanks

dzug1

If the BdeC is buying euros from you it will require 1.251 euros for each £1 it gives you

If it is selling you euros you will get 1.105 euros for each £1 you give it.

The difference is where it covers its running costs and makes any profit.

budgetflyer

We sell = If you have a Pound , they will give you 1.105 Euros for it.

We buy = If you have Euros , you will need to give them 1.251 Euros to get a Pound back

wordsfan

THANK YOU SOOO MUCH GUYS. It seems to be assumed we all know this - we all don't. Thanks

ince_mon

It means they're making a killing.

photome

ince_mon wrote: »

It means they're making a killing.

You mean they are a profitable business employing hundreds/thousands

ince_mon

photome wrote: »

You mean they are a profitable business employing hundreds/thousands

I'm not employed by them,so they're making a killing.:)